Exxaro Resources (EXX) H2 2024 earnings summary

Executive summary

• Leadership changes included the appointment of a new CEO and ongoing independent investigations into prior management.

• Delivered strong operational performance despite market headwinds, maintaining zero fatalities for 28 consecutive months and industry-leading safety metrics.

• Significant social investments and progress in diversity, equity, and inclusion, including a new wage agreement and BEE status retention.

• Advanced decarbonisation and social impact initiatives, including a R2.1bn social spend and progress on carbon intensity reduction.

Financial highlights

• Revenue increased by 5% year-over-year to R40.7bn, but group EBITDA declined by 22% to R10.4bn due to lower coal prices and higher costs.

• Headline earnings per share fell 36% to ZAR 30.16, and return on capital employed was 23%.

• Net cash position rose to ZAR 16.3 billion, supporting a final dividend of ZAR 8.66 per share and a ZAR 1.2 billion share repurchase program.

• Export sales grew 37% to 7 million tonnes, while coal production dropped 7% to 39.5 million tonnes.

• EBITDA margin for the coal business was 26%, down from 35% in FY23.

Outlook and guidance

• Coal production and sales for 2025 are guided at 39.5–43.7 million tonnes, with export sales of 6.65–7.35 million tonnes.

• Sustaining capital guidance remains ZAR 2.5–3 billion; energy generation expected at 780–810 GWh with new solar capacity.

• Continued focus on operational excellence, cost management, ESG integration, and advancing decarbonisation, with a refreshed safety strategy launching in April 2025.